Producer prices in the United States jumped 1.3% in September 2026 from the previous month, marking the sharpest monthly increase since the onset of Russia’s invasion of Ukraine in March 2022 and the second-largest rise on record. The reading far exceeded market expectations for a 0.5% gain.
The surge was driven primarily by a global energy shock stemming from the war in the Middle East, which pushed energy costs for U.S. producers up 10.8% on the month. Higher energy prices, in turn, fueled increases in transportation and warehousing costs (up 3.4%) and trade costs (up 1.4%).
Geopolitical tensions and adverse weather conditions also contributed to higher food prices, which rose 1.2%. Excluding food and energy, the core Producer Price Index (PPI) climbed 0.7%.
On an annual basis, the headline PPI increased 6.3%, the fastest pace since December 2022.
